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- Essay Questions You have just received an inheritance from your aunt of $25,000 in a brokerage account. According to your aunt's will, the monies cannot be withdrawn or put into a savings account (including a CD). The funds must be invested in three different types of financial investments. Select one of the four portfolios below and identify the percentage you would invest in each. Describe the strategy you used to allocate the percentages for each. Research specific investments based on the portfolio you selected. Identify each investment you selected and explain why you made those selections. (Note – there should be at least three symbols in your essay that identify your investments). Option 1 Option 2 Option 3 Option 4 Stock Mutual Fund Bond REIT Bond EFT Mutual Fund ETF Mutual Fund Stock ETF Mutual FundAssume you are in the 32 percent tax bracket and purchase a 3.26 percent, tax-exempt municipal bond. Calculate the taxable equivalent yield for this investment using the formula: Taxable equivalent yield = Tax-exempt return + (1 - Your tax rate) ÷ Note: Enter your answer as a percent rounded to 2 decimal places. Taxable equivalent yield %Individuals Schedule X-Single The tax is $11.000 Chuck, a single taxpayer, earns $79,200 in taxable income and taxable income in over. But not over $15,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) 10% of taxable income $ 44,725 $1,100 plus 12% of the excess over $11,000 $95,375 $5,147 plus 22% of the excess over $44,725 $182,100 $16,290 plus 24% of the excess over $95,375 $231,250 $37,104 plus 32% of the excess over $152.100 $578,125 $52,832 plus 35% of the excess over $231,250 | $174,258.25 plus 37% of the excess over $578,12 Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate 24.00 % 22.00 % $ 11,000 $ 44,725 $ 95,375 $182,100 $231.250…
- Problem 7-21 (Algorithmic) Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $2,000 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $2,000 as a foreign tax credit. Their tax bracket is 28 percent and they itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A? If required, round your answer to the nearest dollar. The foreign tax deduction will result in a s tax benefit where as claiming the foreign tax credit yields a $ tax benefit. Therefore, the taxpayers should15. Tax Deferred Retirement Benefits. If a person with a 24 percent tax bracket makes a deposit of $5,500 to a tax-deferred retirement account, what amount would be saved on cuIrent taxes? Type here to search ho 17 to to 144 f4 40 ?. 7. 8. %23 4. 7. 60 00 LO 96 %24 2.Select the best answer. Which item of income has been constructively received by an individual taxpayer? O O O A. An increase in the value of stock owned estion Q 13 B. A check received for payment of services, but which has not yet been deposited C. Wages earned the last week of December but not paid until January of the following year O D. A line of credit available, but not yet drawn on Submit Answers 95% Complete
- O SYSTEMS OF EQUATIONS AND MATRICES Solving a tax rate or interest rate problem using a system of... Last year, Charlie had $30,000 to invest. He invested some of it in an account that paid 10% simple interest per year, and he invested the rest in an account that paid 8% simple interest per year. After one year, he received a total of $2640 in interest. How much did he invest in each account? First account: 2$ Second account: $ Explanation Check Terms of Use | Privacy Accessibility 2020 McGraw-Hill Education. All Rights Reserved. MacBook ProQUESTION 2 Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill for 2015 was $12,000 and her annual interest payment on her mortgage was $9,500. Based on this information, what is Ann's total income tax shield (i.e. how much is Ann saving on her income taxes)? O A. $3,515.00 O B. $6,450.00 OC. $7,955.00 O D. $4,400.00David has the option to invest in one of the following Town of Elmdale bond that pays 6% interest annually Town of Schitt's Creek bond that pays 6.5% interest annually Prada corporate bond that pays 7% interest annually Gucci corporate bond that pays 6% interest annually David anticipates that his marginal rate will be 10%. Which investment should he choose from tax perspective? a.Group of answer choices b.Prada bond c.Elmdale bond d.Schitt's Creek bond e. Gucci bond
- A 91. Subject:- financeProblem 7-1 (LO7.1) Based on the following data, calculate the items requested: Rental Costs Annual rent Buying Costs Annual mortgage payments Property taxes that mee Insurance Security deposit Kvernelan Down payment/closing costs Growth in equity Insurance/maintenance Estimated annual appreciation Jo JEAN parer Reserves JAPAN JERS Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Assume this individual has other tax deductions that exceed the standard deduction amount MEGANE SOMA autheil Perawatan W Dan meng veter, pepene TRA cerita a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Rental cost Buying cast $ 7,380 $145 $650 8,175 $9,800 ($9,575 is interest) $ 1,780 $ 4,500 $225 $ 1,050 $1,700 CAMENGSHUR KOREAfhverSuppose you are28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. Which one of the followings is likely to be the best investmentinyour 401 (k) account? _____ a. Municipal bonds b. 1-year Treasury notes c. Stock mutual funds d .Annuities
